Jeera May See Buying, Turmeric Exports May Rise.

Rates fell considerably in Unjha mandi for Jeera as arrivals of the new crop were there in full force. Traders on the other hand are still waiting for further fall in prices before initiating fresh queries in the mandis.

As per reports, some buying activities could be reported in the coming weeks at these lower levels as arrivals of better quality crop could lend support to the prices. Exports too are expected to rise over next few weeks.

Apprehensions of lower production and rise in domestic demand are likely to support the prices. Traders expect trading activities to rise significantly in com-ing weeks as the arrivals are likely to shoot up and possibilities of exports too picking up. Low stocks in markets could support the rates in medium term.

Higher acreage expected in Gujarat and Rajasthan due to good moisture con-tent in the soil. Traders expect a far better crop this year. As per State Farm Dept, Gujarat, as on Jan 10, the acreage stood higher at 244,600 ha vs 242,700 ha last year.

Demand from US and European countries likely to shift more towards India in coming weeks due to low stocks in the International markets. Export demand from South-East Asian countries there.

Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-February have risen by 4% from 453,495 MT in 2009-10 to 471,165 MT in 2010-11. Jeera exports fell by 39% from 44,800 MT to 27,500 MT during the same period.

In case of turmeric, some more corrections in prices were observed for as traders awaited dips before initiating fresh demand in the mandis . Reports of higher arrivals, higher stocks and low export demand continued to pressurize prices. There are expectations however that the exports are likely to rise in coming weeks that could support the falling rates for the commodity.

Export demand from Gulf countries supported the prices to some extent. Trend likely to remain volatile as traders expect rates have fallen to significantly low levels and expect demand to pick up in coming weeks. But arrival of new crop in coming weeks could have some bearish impact on the market sentiments. Low stock levels are supporting the prices to some extent.

Lower stocks and reports of delayed arrivals from unseasonal rains in growing areas are likely to support rates in medium term. Pro-spects of improved export and domestic demand in coming weeks are there. Apprehensions of damage to sown crops have been there.

Good rains in the growing areas of AP and Karnataka raised possibilities of a better crop this year. With sowing area in these 2 states expected to rise, it can pressurize the prices to some extent. Traders expect production to range between 65-70 lakh bags vs ~48 lakh bags last year (1 bag = 70-75 kg).

There are expectations of farmers switching to this crop this year as the returns last year had been good. This is expected to improve the crop production aspects.

Source : commodityonline.com